Oil import demand has increased to 88%

The administration had to take measures ahead of the general elections, resulting in lowered prices for LPG cylinders and motor fuel. Oil marketing corporations (OMCs) may face profitability questions due to recent price spikes, despite healthy profits in the first three quarters of FY24. Analysts predict daily fuel price modifications will resume after the elections, but fluctuating global oil prices may continue to pose challenges in the next fiscal year.

India imported 212.8 million tonnes of crude oil during the fiscal year that ended in February. However, the country’s import cost decreased by 17.6% to $120.8 billion, mostly as a result of large export discounts offered by Russia, the top supplier.

The administration announced reforms to increase the proportion of gas in the energy mix from 6.7% to 16% by 2030 In FY22-23, LNG imports rose to 27,933 MMSCM, while domestic natural gas production increased by 6% to 33,299 MMSCM. Analysts predict that new domestic natural gas production of 15 MMSCM per day will be available in FY25.

India’s reliance on imported LNG has decreased over the last three years and is predicted to remain at around 45% by FY26 due to the increase in domestic gas output.

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